Damages Claim for Trademark Infringement Rejected Due to Lack of Evidence Supporting the Economic Detriment

In “Scheinsohn, Maria Gabriela Ana v. Jorge, Juan Jose – Cease of use of Trademarks. Damages”, the plaintiff filed a complaint seeking the discontinuance of use of the registered trademark NATASSJA and damages arising out of the infringement,

The court of first instance admitted the complaint and ordered the cease of use of the trademark, but rejected the damages claim. The court considered that the trademark infringement had been proven and that this constituted an unfair competition act. However, the court concluded that none of the evidence produced during the proceedings proved the existence of damages.

The plaintiff appealed the rejection of the damages claim and the appellate court upheld the first instance decision. The court considered that the cease of use order is not sufficient to award a compensation for damages if there is not enough evidence that the trademark owner suffered an actual damage. Indeed, the decision highlighted that the plaintiff failed to produce evidence on their accounting books to prove the alleged damage. The appellate court considered that damages should be examined through the lens of civil law, which states that hypothetical damages cannot be repaired.

This decision is relevant since it sets apart from previous precedents of the Federal Court of Appeals regarding presumption of damages in trademark infringements.